Prezzo restaurant group to close 94 outlets

Creditors of restaurant group Prezzo have backed a restructuring plan that will see it close 94 outlets – about a third of the chain.

It is estimated the move could lead to 500 job losses. The chain, which is owned by private equity firm TPG Capital, employs about 4,500 people.

The 94 closures include restaurants under the Prezzo, Mexico and Cleaver brands and all 33 Chimichanga sites .

Under the rescue plan, rents will be cut by between 25% and 50% at 57 sites.

The closures and rent reductions aim to repair the group’s financial position and allow it to continue trading.

The deal was struck under a restructuring arrangement know as a company voluntary arrangement (CVA) – a step short of going into administration.

Jon Hendry-Pickup, chief executive of Prezzo, thanked the company’s creditors and landlords for their support.

He said: “While we continue to be profitable, the pressures on our industry have been well documented. Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders.”

Media playback is unsupported on your device

Media captionTrouble for High Street restaurants

The restaurants identified for closure are likely to close in April and May. Prezzo said that staff would be made aware of the exact dates as soon as they had been confirmed.

Prezzo was bought by TPG in 2014 for just over £300m.

It is the latest of a number of restaurant chains to run into difficulties.

Burger chain Byron and Jamie’s Italian have both had to undergo similar restructurings this year, agreeing rescue plans with their lenders and landlords, and closing restaurants.

Related Articles

Image copyright Getty Images The former Korean Air executive who was sacked and jailed for a ‘nut rage’ tantrum on board a plane has made a corporate comeback. Heather Cho, heiress to the South Korean conglomerate which owns the airline, has returned to work for another of its businesses. Ms Cho will take control of […]

Image copyright AFP Donald Trump has criticised the Opec oil producers’ group, saying crude prices are “artificially very high”. In a tweet, the US President said this was “no good” and “would not be accepted”. The main crude oil benchmark prices, Brent and West Texas Intermediate (WTI), fell around 1% after the tweet. Oil prices […]

Image copyright Getty Images All work and no play makes Jack a dull boy, so the old proverb goes. But does it also make Jack less productive, less efficient, unhappy and more stressed? That’s the view of a growing number of voices, including the UK’s trade union body, the TUC. They want businesses to cut […]